Mobile TV: Poised and Ready to Go?

Mobile TV is still attracting a huge amount of attention worldwide and is expected to make a true impact in 2009 in regions such as the United States and Europe. It is in Asia where mobile TV continues to find most of its viewers with a great deal of its consumption occurring on daily journeys made by commuters and by the digital natives of the region. It is still a very young technology and the correct business model for mobile TV is likely to vary greatly from country to country. The whole concept of mobile TV depends very much on consumer’s lifestyles. Do they pay for it? Will they choose free-to-air with all revenues made through advertising? The mobile operators need to find the right business model to fit their customer base.

Juniper Research estimates that the mobile TV broadcast services user base will reach an impressive 330 million by the end of 2013. However, this will not be reached through the pay-per-view business model as was first envisioned, but through the free-to-air route. Perhaps this is unsurprising considering the difficult financial climate we now find ourselves in. During this recent period of evolution, hard work has been going on behind the scenes and by many different companies to help make the whole mobile TV package a mass market reality with the creation of handsets with low power consumption, for example, and many other device features that will be necessary for mobile TV to succeed.

At present, Japan remains the largest consumer of mobile TV services but Juniper expects this to change by 2013 when China is expected to take over as the prime user. Streamed bouquets are also expected to provide the bulk of mobile TV revenues for the foreseeable future. Interestingly, and perhaps unsurprisingly, Juniper also discovered that the global economic downturn is ‘likely to lead to the postponement or even cancellation of the rollout of dedicated mobile TV broadcast services in several markets’.

Free-to-Air (FTA) mobile television is likely to be the most reliable business model to kickstart the mobile TV revolution, especially in an economic downturn where people have a great deal less disposable income than before. For many, mobile TV may simply just be something that cannot be considered, especially if it has to be paid for through high tariffs. FTA services offer the viewer the opportunity to go ahead and enjoy mobile TV but they must watch a series of advertisements to access the programme they wish to view. These advertisements may be targeted to a particular group that is associated with the content giving the advertisers maximum exposure to their target groups.

Nortel announces workforce reductions
Nortel intends to reduce its workforce by an additional net 3,200 positions worldwide. The company expects to carry out these reductions over the next several months, in accordance with local country legal requirements. These new reductions are incremental to the 1,800 remaining reductions from previously announced plans that require completion...

Integral Systems acquires satID Intellectual Property
Integral Systems has purchased the intellectual property and other assets relating to the satID product line from U.K.-based QinetiQ Group PLC. Satellite operators around the world use satID to geolocate the source of satellite interferers, jammers, and unauthorized users to ensure quality of satellite service. Integral Systems has utilized the satID capability in the RAIDRS program for the U.S. Air Force and other Integral Systems offerings. The satID product line and services will become a part of Integral Systems' Space Communications group...

Telenor will continue to defend its investment in VimpelCom
Telenor has said it will appeal the court decision of the Eight Arbitrazh Appellate Court in Omsk holding Telenor liable for approximately US$1.7 billion in damages. The Omsk Court has heard from the start claims by Farimex Products Inc, a British Virgin Islands company, against Telenor, in which Farimex alleged that Telenor’s nominees on the VimpelCom board delayed VimpelCom’s acquisition of Ukranian mobile operator Ukranian Radio Systems (URS). Depsite the fact that the claims against Telenor are baseless and unlawful, the Court decided to grant Farimex’s claims in part...

Fonenet appointed as distributor
Fonenet, a UK-based telecom solution provider, will be marketing and distributing ThurayaIP, a competitive mobile satellite broadband service, in UK and major African markets. With a strong distribution network, Fonenet will be targeting key market segments such as oil and gas operations and NGOs offices, as well as private customers...